Cramer: 'Europe's Coming Back'

“This is a great moment to own industrials,” Cramer said during Wednesday’s Stop Trading!.

He pointed to the action in Caterpillar , which was up about 3% today, as an example and credited the turn in Europe after this past weekend’s near $1 trillion bailout package.

Stop Trading! Listen to Cramer

Mad Money host Jim Cramer gives his take on the markets.

Cramer said the International Monetary Fund will force the countries in question – Greece, Spain and Portugal, among others – to push through austerity measures, and there was evidence of that already, with Spain announcing pay reductions and job cuts for civil service employees. This should result in a jump-start in spending in the stronger European Union members, and that’s why CAT was ramping today. Hewlett-Packard , the technology company hurt the most by the Continent’s debt problems, was up almost 3% as well.

Cramer also said that industrials were higher now than they were last week ahead of the Dow’s 1,000-point drop last Thursday, when investors were much less confident in the market because of the trouble in the EU.

Another important thing for investors to note: This is just year one in what is typically a seven-year aerospace cycle led by Boeing. The launch of the company’s 787 Dreamliner set that cycle in motion, and it should carry BA, and its related companies, higher.

“Boeing is a strong buy,” Cramer said.

He endorsed Honeywell International , Precision Castparts , Allegheny Technologies and BE Aerospace as well.